Legal analysis: Different interest rate systems depend on different economic systems. Generally speaking, the interest rate system consists of three levels; Firstly, the interest rate formation mechanism is the core; The second is the interest rate operation mechanism based on the interest rate formation mechanism; The third is the interest rate regulation mechanism established to ensure the benign operation of the former two.

Legal basis: Article 21 of the Regulations on the Administration of RMB Interest Rate, the interest rate of medium and long-term loans (with a term of more than one year) is fixed at one year. The loan (including all the funds that should be allocated by installments within one year from the effective date of the loan contract) bears interest according to the legal loan interest rate of the corresponding grade on the effective date of the loan contract, and one year later, the interest rate of the next year is determined according to the legal loan interest rate of the corresponding grade at that time (the first loan is paid by installments). Medium and long-term loans are settled quarterly, and the 20th of the last month of each quarter is the settlement date. The interest that cannot be paid on schedule during the loan period shall be compounded quarterly according to the contract interest rate, and after loans overdue, it shall be compounded at the default interest rate.